sale of existing shareholders
stock exchange placing
direct sale to public through prospectus
sale to biometers
Answer is Right!
Answer is Wrong!
The correct answer is: C. direct sale to public through prospectus.
A prospectus is a document that provides information about a security, such as a stock or bond, to potential investors. It includes information about the company issuing the security, the risks associated with investing in the security, and the potential returns.
A direct sale to public through prospectus is a method of marketing new securities in which the issuer sells the securities directly to the public, rather than through an intermediary such as a stock exchange. This method is often used by small companies that do not have the resources to list their securities on a stock exchange.
The other options are incorrect because:
- Option A, sale of existing shareholders, is a method of marketing new securities in which the issuer sells the securities to existing shareholders. This method is often used by companies that are raising additional capital.
- Option B, stock exchange placing, is a method of marketing new securities in which the issuer sells the securities to institutional investors, such as banks and pension funds. This method is often used by large companies that are raising significant amounts of capital.
- Option D, sale to biometers, is not a method of marketing new securities. Biometers are devices that measure blood sugar levels.